With household budgets under pressure, Australian shoppers are looking beyond Coles and Woolworths for cheaper groceries. Aldi, independent supermarkets, fresh food markets, bulk-buy stores and supermarket home brands are among the alternatives helping consumers compare prices and reduce the cost of their weekly shop.

Recent research from consumer organisation CHOICE provides a useful benchmark. Its September 2026 supermarket comparison found that Aldi was the cheapest of four major supermarkets for a comparable basket of 17 products. The results suggest that changing where you buy everyday essentials could save hundreds of dollars a year, although the amount depends on the products you purchase, local prices and how often you shop.

Why are shoppers moving away from Coles and Woolworths?

Coles and Woolworths remain major parts of Australia's grocery market, but shoppers do not have to purchase every item from the same retailer. Many households are comparing unit prices, switching to private-label products and visiting alternative stores for selected items.

Cost-of-living pressure is one reason for the change. Grocery spending is a recurring household expense, so even relatively small differences in the cost of milk, eggs, bread, rice, vegetables and pantry staples can add up over a year.

The most effective approach is not necessarily to abandon Coles and Woolworths completely. It is to compare the products you regularly buy and choose the retailer offering the best value without adding unnecessary travel costs or food waste.

CHOICE supermarket comparison: Aldi vs Coles vs Woolworths

CHOICE published its latest comparison on 24 September 2026 after pricing a basket of 17 comparable products across Aldi, Coles, Woolworths and IGA. The survey covered 104 supermarkets in 27 Australian locations, with the base comparison excluding specials to make underlying shelf prices easier to compare.

How the annual estimates work: The difference between each supermarket's basket price and Aldi's price is multiplied by 52 weekly shops. For example, $7.90 multiplied by 52 equals $410.80.

These estimates are not guaranteed household savings. They assume the same basket is purchased every week, and they do not include transport costs, differences in product preferences, changing prices or additional purchases. IGA prices also vary substantially between stores and locations.

Read the full CHOICE supermarket price comparison.

1. Shop at Aldi for everyday essentials

Aldi is a practical alternative for shoppers who want to compare the cost of everyday groceries. Its range includes milk, eggs, bread, rice, pasta, frozen food, pantry staples and selected fresh produce.

CHOICE's September 2026 comparison found Aldi had the cheapest basket among the four supermarkets surveyed. That makes it worth checking whether Aldi offers lower prices on the products your household purchases regularly.

What should you compare?

• Milk, yoghurt and other dairy products.
• Eggs and everyday breakfast items.
• Bread, rice, pasta and flour.
• Frozen vegetables and pantry staples.
• Cleaning products and selected household essentials.

Product sizes, brands and ingredients can differ between retailers. Compare equivalent quantities and check the unit price rather than assuming two packages are identical because they appear similar.

2. Use fresh food markets for seasonal produce

Local farmers' markets, fruit shops and independent greengrocers can be useful alternatives for shoppers who regularly buy fresh produce. Prices may be competitive when particular fruit and vegetables are in season or when retailers have surplus stock.

However, markets are not always cheaper than supermarkets. Prices vary with location, season, quality, supply and the time of day. Shoppers should compare the price per kilogram and purchase only the quantity they expect to use.

How to make market shopping worthwhile

• Check seasonal produce prices before deciding where to shop.
• Compare the cost per kilogram instead of the price per bag.
• Buy only quantities your household can consume before the food spoils.
• Plan meals around vegetables and fruit that are currently affordable.
• Include parking, transport and travel time when calculating the overall saving.

For households that already visit a local market, buying selected produce there and purchasing pantry goods elsewhere may be more economical than making a separate trip solely to save a small amount.

3. Compare independent and specialist grocery stores

Independent supermarkets and specialist grocers can offer competitive prices on particular categories. Asian grocery stores, for example, may stock rice, noodles, spices, sauces, legumes and bulk pantry products in different sizes from mainstream supermarkets.

These shops can be especially useful when you regularly cook meals that use specific ingredients. But prices vary between stores, and a larger package is not automatically cheaper once the unit price is calculated.

IGA stores are another alternative, although CHOICE's national comparison found that its surveyed basket cost more than the Aldi, Coles and Woolworths baskets. Individual stores can differ, so compare local prices rather than assuming all independent supermarkets offer the same savings.

4. Consider Costco for products you use regularly

Costco can be worth comparing for households that use large quantities of selected groceries and household supplies. Bulk packages may reduce the cost per unit, particularly for long-life products, but membership fees and package sizes need to be considered.

Before buying in bulk, ask whether your household can use the product before it expires, whether you have enough storage space and whether the total purchase fits your budget. Buying more than you need can tie up money and increase waste even when the unit price appears attractive.

Costco is not necessarily the cheapest option for every product, and the cost of travelling to a warehouse or maintaining a membership can reduce the benefit. Compare the full cost against a regular supermarket before making a large purchase.

5. Switch to supermarket home brands

Shoppers do not always need to change stores to reduce their grocery bills. Choosing private-label or home-brand products at Coles and Woolworths can be a convenient way to reduce costs while continuing to shop at a familiar location.

Compare home-brand versions of staples such as flour, sugar, canned tomatoes, pasta, rice, oats and cleaning products. Check the ingredients, product weight and unit price before switching, especially for foods where nutritional content or dietary requirements matter.

For some products, a branded item on special may cost less than the home-brand alternative. Comparing the actual shelf prices is more reliable than assuming a particular brand or retailer always offers the lowest price.

6. Check weekly specials without buying unnecessary products

Coles and Woolworths regularly advertise discounts and promotional prices. These offers can be useful for products you already plan to purchase, particularly when a non-perishable item is discounted and can be stored safely.

The important rule is to compare the sale price with the normal price and the price of equivalent products elsewhere. A large discount does not create a saving if it encourages you to purchase something you did not need.

• Review store catalogues before preparing your shopping list.
• Compare the discounted unit price across retailers.
• Buy extra quantities only when the product will be used and stored safely.
• Check the price per 100 grams, kilogram or litre.
• Avoid adding unplanned items merely to qualify for a promotion.

7. Use loyalty programs carefully

Coles Flybuys and Woolworths Everyday Rewards offer points and member promotions. These programs can provide value when rewards are earned on products you would buy anyway, but the benefit depends on spending, available offers and how points are redeemed.

CHOICE has examined whether supermarket loyalty programs provide genuine savings and found that their value depends on the shopper's behaviour and the offers available. A points offer should not automatically outweigh a lower shelf price at another store.

For a fair comparison, calculate the final cost after any genuine discount or reward benefit and compare it with the price available elsewhere. Avoid spending extra to earn points if the additional purchase is not necessary.

Read CHOICE's analysis of supermarket loyalty programs.

8. Plan a split-shop strategy

One way to reduce grocery costs is to buy different categories from different retailers. Rather than travelling to several stores for every item, assign each store a purpose and visit alternatives only when the expected savings justify the extra effort.

A split-shop strategy works best when stores are close together or when a visit can be combined with an existing trip. Spending $5 on extra fuel to save $3 on groceries does not reduce the total household cost.

How much can an Australian household realistically save?

The savings depend on current spending and the products being compared. CHOICE's 17-item basket provides a transparent starting point, but it should not be used to promise a particular saving for every family.

These calculations show how a repeated price difference can add up to hundreds of dollars annually for the same basket. They do not establish that every shopper will save those exact amounts or that switching supermarkets alone will reduce a household's entire annual grocery bill by that figure.

Households can measure their own results by recording the total cost of a typical shop, comparing the same products across retailers and reviewing the difference after a month. Include travel expenses and avoid counting loyalty rewards as savings unless they deliver a genuine benefit.

A practical four-week plan to cut grocery spending

Week 1: Record your normal spending

Keep receipts and note the products your household buys most often. Separate essentials from snacks, impulse purchases and non-food items. This establishes a baseline for comparing future shops.

Week 2: Compare a basket at Aldi

Take your regular shopping list and compare equivalent products at Aldi. Start with the products you purchase most frequently, and record any difference in package size, ingredients or quality.

Week 3: Check markets and independent stores

Compare local prices for fresh produce and specialist ingredients. Visit only if the likely savings justify the travel and time involved, and avoid buying more food than your household can use.

Week 4: Review the results

Compare your total spending with the first week. Calculate the actual difference after travel costs, food waste and any extra purchases. Keep the changes that reduce costs without making shopping unnecessarily complicated.

Frequently asked questions

Conclusion

Australian shoppers do not have to rely on one supermarket for every grocery purchase. CHOICE's September 2026 comparison found that Aldi had the cheapest 17-item basket among the four retailers surveyed, with a difference of $5.58 compared with Woolworths and $7.90 compared with Coles. Repeated weekly, those differences amount to approximately $290 and $411 respectively for that specific basket. Aldi, local markets, independent grocers, bulk-buy stores and home-brand products are all worth comparing, but the best option depends on local prices and household needs. Tracking receipts, checking unit prices and avoiding unnecessary purchases can help households identify genuine savings without making grocery shopping more expensive or complicated.